Emirates Global aluminium project clears Guinea hurdle

Guinea's parliament backs amendments to deal which will see the start of bauxite production in 2017

Mubadala and Dubal acquired the stakes of BHP and Global Alumina to form Emirates Global Aluminium.

Mubadala and Dubal acquired the stakes of BHP and Global Alumina to form Emirates Global Aluminium.

Guinea's parliament has approved amendments in a deal with Emirates Global Aluminium which will see the start of bauxite production in 2017 and the construction of a 2-million-tonne-per-year alumina refinery from 2018.

"The National Assembly unanimously adopted the amendment of Global Alumina project," Saadou Nimaga, legal counsel of Guinea's mines ministry told Reuters late on Tuesday.

The adoption of the amendments clears the path for the project after the West African nation and Abu Dhabi state-owned investment fund Mubadala signed a $5 billion agreement in November to develop a bauxite mine and an alumina refinery in minerals-rich Guinea.

The project was previously owned by a consortium that included Dubai Aluminium (Dubal), Mubadala, BHP Billiton and Global Alumina and had planned to build a 2.8 million tonnes refinery. The project was delayed after failing to raise funds following the financial crisis.

Mubadala and Dubal acquired the stakes of BHP and Global Alumina to form Emirates Global Aluminium.

It is set to become the world's fifth largest aluminium company by output this year and the Guinea project will enable it secure raw material for United Arab Emirates' aluminium plants.

Guinea is the world's top supplier of bauxite, the raw material used in aluminium production. Alumina is partially refined bauxite.

Under the agreement bauxite will be ready for export by 2017 and the refinery will be operational by 2022.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Power to the people in Saudi Arabia

Power to the people in Saudi Arabia

As Saudi Arabia fights to control surging electricity demand...

Inside Google's brave new world

Inside Google's brave new world

The $500bn technology giant is extending its reach into hardware...

Accounting meets religion in challenge for Islamic banks

Accounting meets religion in challenge for Islamic banks

Reconciling accounting standards and religious principles is...

Most Discussed
sponsoredTracking